ARTICLE 4 SUBSTITUTE A AS AMENDED

RELATING TO E-911 EMERGENCY TELEPHONE SYSTEM

SECTION 1. Section 39-1-62 of the General Laws in Chapter 39-1 entitled “Public Utilities Commission” is hereby amended to read as follows:

 39-1-62. E-911 Geographic Information System (GIS) and Technology Fund. [Repealed effective June 30, 2007.]. – (a) Preamble. To allow the Rhode Island E-911 Emergency Telephone System agency to associate latitude and longitude coordinates provided by wireless carriers with physical locations throughout the state, the agency must establish and maintain a GIS database of street addresses and landmarks. The database will allow local emergency response personnel to dispatch police, fire and rescue personnel to a specific address or landmark of a cellular caller in the event the caller is unaware of his or her location, or is physically unable to communicate it. Because more than half of the 530,000 9-1-1 phone calls received in 2003 came from cellular phones, it is critical that the GIS database be developed and maintained in order to improve caller location identification and reduce emergency personnel response times.

   (b) Definitions. As used in this section, the following terms have the following meanings:

   (1) "System" means Emergency 911 Uniform Telephone System.

   (2) "Agency" means Rhode Island 911 Emergency Telephone System.

   (3) "Division" means the Division of Public Utilities and Carriers.

   (4) "GIS and Technology Fund" means the programs and funding made available to the Emergency 911 Uniform Telephone System to assist in paying the costs of the GIS database development project and GIS systems maintenance, which will enable the system to locate cellular phone callers by geocoding all addresses and landmarks in cities and towns throughout the state. It GIS and Technology Fund also includes programs and funding to create system redundancy, fund the construction of a new E-911 facility, and operate and maintain other state-of-the-art equipment technology in public safety agencies.

   (c) Purpose. The purpose of the GIS and Technology Fund shall be to:

   (1) Implement and maintain a geographic information system database to assist in locating wireless phone callers for emergency purposes in a manner consistent and in coordination with the Rhode Island geographic information system administered by the Division of Planning as provided for in § 42-11-10(g)(3); and

(2) Create system redundancy to ensure the reliability of 9-1-1 service to the public; and

(3) Operate and Mmaintain other state-of-the-art equipment technology in public safety agencies; and.

(4) Fund the construction of a new E-911 facility.

(d) Authority. The agency shall establish, by rule or regulation, an appropriate funding mechanism to recover from the general body of ratepayers the costs of funding GIS and technology projects.

(1) The general assembly shall determine the amount of a monthly surcharge to be levied upon each wireless instrument, device or means including prepaid, cellular, telephony, Internet, Voice Over Internet Protocol (VoIP), satellite, computer, radio, communication, data, or any other wireless instrument, device or means that has access to, connects with, interfaces with or is capable of delivering two-way interactive communications services to the Rhode Island E-911 Uniform Emergency Telephone System. The agency will provide the general assembly with information and recommendations regarding the necessary level of funding to effectuate the purposes of this article. The surcharge shall be billed monthly by each wireless telecommunications services provider as defined in § 39-21.1-3 and shall be payable to the wireless telecommunications services provider by the subscriber or prepaid service customer of the telecommunications services. Each telecommunication services provider shall establish a special (escrow) account to which it shall deposit on a monthly basis the amounts collected as a surcharge under this section. The money collected by each wireless telecommunication services provider shall be transferred within sixty (60) days after its inception of wireless, prepaid, cellular, telephony, Voice Over Internet Protocol (VoIP), satellite, computer, Internet, or communications, information or data services in this state and every month thereafter. Any money not transferred in accordance with this paragraph shall be assessed interest at eight percent (8%) per annum at the rate set forth in section 44-1-7 from the date the money should have been transferred. State, local and quasi-governmental agencies shall be exempt from the surcharge. The surcharge shall be deposited in a restricted receipt account, hereby created within the agency and known as the GIS and Technology Fund, to pay any and all costs associated with the provisions of subsection (c). Beginning July 1, 2007, the surcharge shall be deposited in the general fund as general revenues to pay any and all costs associated with the provisions of subsection (c). The GIS and Technology Fund restricted receipt account shall be terminated June 30, 2008. The amount of the surcharge under this section shall not exceed thirty-five cents ($.35) per wireless phone.

(2) The surcharge is hereby determined to be twenty-six cents ($.26) per wireless phone, prepaid, cellular, telephony, Voice Over Internet Protocol (VoIP), satellite, computer, data or data only wireless lines or Internet communication or data instrument, device or means which has access to, connects with, activates or interfaces with or any combination of the above with the Rhode Island E-911 Uniform Emergency Telephone System per month and shall be in addition to the wireless surcharge charged under § 39-21.1-14. The twenty-six cents ($.26) is to be billed to all wireless telecommunication service providers, subscribers or prepaid service customers upon the inception of services.

(3) The amount of the surcharge shall not be subject to the sales and use tax imposed under chapter 18 of title 44 nor be included within the gross earnings of the telecommunications corporation providing telecommunications service for the purpose of computing the tax under chapter 13 of title 44.

   (4) With respect to prepaid wireless telecommunication service providers and customers, and notwithstanding anything to the contrary contained in this section, the surcharge shall be collected and remitted to the division of taxation by the prepaid wireless telecommunication service provider under one of three (3) methods:

(i) The prepaid wireless telecommunication service provider shall collect the surcharge, on a monthly basis, from each active prepaid wireless telecommunication service customer whose account balance is equal to or greater than the amount of the service charge; or

(ii) The prepaid wireless telecommunication service provider shall collect the surcharge, on a monthly basis, at the point of sale; or

   (iii) The prepaid wireless telecommunication service provider shall divide the total earned prepaid wireless telephone revenue received by the prepaid wireless telecommunication service provider within the monthly reporting period by fifty dollars ($50.00), and multiply the quotient by the amount of the surcharge.

   The surcharge amount or an equivalent number of air-time minutes may be reduced from a prepaid wireless telecommunication service customer's account when direct billing is not possible.

   (e) Administration. The division of taxation shall collect monthly from the wireless telecommunications service providers as defined in § 39-21.1-3 the amounts of the surcharge collected from their subscribers or prepaid customers. The division of taxation shall deposit such collections in an account maintained and administered by the Rhode Island 911 Emergency Telephone System in the general fund as general revenues for use in developing and maintaining the geographic information system database, creating system redundancy, funding the construction of a new E-911 facility and improving operating and maintaining other state-of-the-art equipment technology for public safety agencies. The agency is further authorized and encouraged to seek matching funds from all local, state, and federal public or private entities and shall coordinate its activities and share all information with the state Division of Planning.

(f) Effective date. The effective date of assessment for the GIS and Technology Fund shall be July 1, 2004.

(g) Nothing in this section shall be construed to constitute rate regulation of wireless communications services carriers, nor shall this section be construed to prohibit wireless communications services carriers from charging subscribers for any wireless service or feature.

(h) Except as otherwise provided by law, the agency shall not use, disclose or otherwise make available call location information for any purpose other than as specified in subsection (c).

(i) The attorney general shall, at the request of the E-911 uniform emergency telephone system division, or any other agency that may replace it, or on its own initiative, commence judicial proceedings in the superior court against any telecommunication services provider as defined in § 39-21.1-3(11) providing communication services to enforce the provisions of this chapter.

SECTION 2. Sections 39-21.1-14 of the General Laws in Chapter 39-21.1 entitled "911 Emergency Telephone Number Act" are hereby amended to read as follows:

39-21.1-14. Funding. -- (a) A monthly surcharge of one dollar ($1.00) is hereby levied upon each residence and business telephone line or trunk or path and data, telephony, Internet, Voice Over Internet Protocol (VoIP) wireline, line, trunk or path in the state including PBX trunks and centrex equivalent trunks and each line or trunk serving, and upon each user interface number or extension number or similarly identifiable line, trunk, or path to or from a digital network (such as, but not exclusive of, integrated services digital network (ISDN), Flexpath or comparable digital private branch exchange, or connecting to or from a customer-based or dedicated telephone switch site (such as, but not exclusive of, a private branch exchange (PBX)), or connecting to or from a customer-based or dedicated central office (such as, but not exclusive of, a centrex system but exclusive of trunks and lines provided to wireless communication companies) that can access to, connect with or interface with the Rhode Island E-911 Uniform Emergency Telephone System (RI E-911). The surcharge shall be billed by each telecommunication services provider at the inception of services and shall be payable to the telecommunication services provider by the subscriber of the services. A monthly surcharge of one dollar ($1.00) is hereby levied effective July 1, 2002, on each wireless instrument, device or means including prepaid, cellular, telephony, Internet, Voice Over Internet Protocol (VoIP), satellite, computer, radio, communication, data or data only wireless lines or any other wireless instrument, device or means which has access to, connects with, or activates or interfaces or any combination thereof with the E 9-1-1 Uniform Emergency Telephone System. The surcharge shall be in addition to the surcharge collected under section 39-1-62 and shall be billed by each telecommunication services provider and shall be payable to the telecommunication services provider by the subscriber or prepaid services customer. The E-911 Uniform Emergency Telephone System shall establish, by rule or regulation an appropriate funding mechanism to recover from the general body of ratepayers this surcharge.

(b) The amount of the surcharge shall not be subject to the tax imposed under chapter 18 of title 44 nor be included within the telephone common carrier's gross earnings for the purpose of computing the tax under chapter 13 of title 44.

(c) Each telephone common carrier and each telecommunication services provider shall establish a special account to which it shall deposit on a monthly basis the amounts collected as a surcharge under this section.

(d) The money collected by each telecommunication services provider shall be transferred within sixty (60) days after its inception of wireline, wireless, prepaid, cellular, telephony, Voice Over Internet Protocol (VoIP), satellite, computer, Internet, or communications services in this state and every month thereafter, to the division of taxation, together with the accrued interest and shall be deposited in the general fund as general revenue. Any money not transferred in accordance with this paragraph shall be assessed interest at eight percent (8%) per annum at the rate set forth in section 44-1-7 from the date the money should have been transferred.

(e) Every billed subscriber-user shall be liable for any surcharge imposed under this section until it has been paid to the telephone common carrier or telecommunication services provider. Any surcharge shall be added to and may be stated separately in the billing by the telephone common carrier or telecommunication services provider and shall be collected by the telephone common carrier or telecommunication services provider.

(f) Each telephone common carrier and telecommunication services provider shall annually provide the E 9-1-1 uniform emergency telephone system division or any other agency that may replace it, with a list of amounts uncollected together with the names and addresses of its subscriber-users who can be determined by the telephone common carrier or telecommunication services provider to have not paid the surcharge.

(g) Included within, but not limited to, the purposes for which the money collected may be used are rent, lease, purchase, improve, construct, maintenance, repair, and utilities for the equipment and site or sites occupied by the E 9-1-1 uniform emergency telephone system; salaries, benefits, and other associated personnel costs; acquisition, upgrade or modification of PSAP equipment to be capable of receiving E 9-1-1 information, including necessary computer hardware, software, and data base provisioning, addressing, and non-recurring costs of establishing emergency services; network development, operation and maintenance; data-base development, operation, and maintenance; on-premise equipment maintenance and operation; training emergency service personnel regarding use of E 9-1-1; educating consumers regarding the operations, limitations, role and responsible use of E 9-1-1; reimbursement to telephone common carriers or telecommunication services providers of rates or recurring costs associated with any services, operation, administration or maintenance of E 9-1-1 services as approved by the division; reimbursement to telecommunication services providers or telephone common carriers of other costs associated with providing E 9-1-1 services, including the cost of the design, development, and implementation of equipment or software necessary to provide E 9-1-1 service information to PSAP's, as approved by the division.

(h) [Deleted by P.L. 2000, ch. 55, art. 28, section 1.]

(i) Nothing in this section shall be construed to constitute rate regulation of wireless communication services carriers, nor shall this section be construed to prohibit wireless communication services carriers from charging subscribers for any wireless service or feature.

(j) [Deleted by P.L. 2006, ch. 246, art. 4, section 1_.

SECTION 3. Sections 44-1-2, 44-1-2, 44-1-7, 44-1-7, 44-1-7.1, 44-1-29, 44-1-31 and 44-1-32 of the General Laws in Chapter 44-1 entitled "State Tax Officials" are hereby amended to read as follows:

44-1-2. Powers and duties of tax administrator. -- The tax administrator is required:

(1) To assess and collect all taxes previously assessed by the division of state taxation in the department of revenue and regulation, including the franchise tax on domestic corporations, corporate excess tax, tax upon gross earnings of public service corporations, tax upon interest bearing deposits in national banks, the inheritance tax, tax on gasoline and motor fuels, and tax on the manufacture of alcoholic beverages;

(2) To assess and collect the taxes upon banks and insurance companies previously administered by the division of banking and insurance in the department of revenue and regulation, including the tax on foreign and domestic insurance companies, tax on foreign building and loan associations, deposit tax on savings banks, and deposit tax on trust companies;

(3) To assess and collect the tax on pari-mutuel or auction mutuel betting, previously administered by the division of horse racing in the department of revenue and regulation.

(4) [Deleted by P.L. 2006, ch. 246, art. 38, section 10].

(5) To assess and collect the monthly surcharges that are collected by telecommunication services providers pursuant to section 39-21.1-14 and are remitted to the division of taxation.

(6) To audit, assess and collect all unclaimed intangible and tangible property pursuant to chapter 21.1 of title 33.

44-1-7. Interest on delinquent payments. [Effective until August 15, 2010.] -- (a) Whenever the full amount of any state tax or any portion or deficiency, as finally determined by the tax administrator, or any surcharge that is required to be remitted to the tax division pursuant to section 39-21.1-14, has not been paid on the date when it is due and payable, whether the time has been extended or not, there shall be added as part of the tax or portion or deficiency, or surcharge as referenced in this provision, interest at the rate as determined in accordance with subsection (b) of this section, notwithstanding any general or specific statute to the contrary; provided, however, no interest or penalties shall be added to any deficiency resulting from imputed income from domestic partner healthcare benefits for tax years 2002 through 2004 provided the taxpayer files amended returns by August 15, 2006.

(b) Each January 1 the tax administrator shall compute the rate of interest to be in effect for that calendar year by adding two percent (2%) to the prime rate, which was in effect on October 1 of the preceding year. In no event shall the rate of interest exceed twenty-one percent (21%) per annum nor be less than eighteen percent (18%) per annum.

(c) "Prime rate" as used in subsection (b) of this section means the predominant prime rate quoted by commercial banks to large businesses as determined by the board of governors of the Federal Reserve System.

44-1-7.1. Interest on overpayments. -- (a) Notwithstanding any general or specific statute to the contrary, overpayments of state taxes or surcharges that are remitted to the tax division in accordance with section 39-21.1-14, shall bear interest at the rate provided in section 44-1-7 from the date the tax was paid, or from the date including any extensions of the date the tax became due, whichever of the dates occurs later.

(b) Notwithstanding any general or specific statute to the contrary, overpayments of state taxes or surcharges that are remitted to the tax division pursuant to section 39-21.1-14, shall bear interest at the prime rate as defined in section 44-1-7.1(a) from the date the tax or the surcharge that is referenced in this provision was paid, or from the date including any extensions of the date the tax became due, whichever of the dates occurs later.

(c) If any overpayment of state tax is refunded within ninety (90) days after the last date prescribed (or permitted by extension of time) for filing the return of the tax, or within ninety (90) days after the return is in fact filed, no interest shall be allowed under this section on the overpayment.

(d) For the purposes of this section, if any overpayment of state tax results from a carry-back of a net operating loss, the overpayment is deemed not to have been made prior to the close of the taxable year in which the net operating loss arises.

(e) If any overpayment of a surcharge referenced in subsection (b) of this section is refunded within ninety (90) days after notification of overpayment of the surcharge, no interest shall be allowed under this section on the overpayment.

44-1-29. Collection by writ of execution. -- (a) Whenever the full amount of any state tax or any portion or deficiency, as finally determined by the tax administrator, or any surcharge that is required to be remitted to the tax division pursuant to section 39-21.1-14 is paid within thirty (30) days after the tax or penalty becomes due and payable, the tax administrator, in addition to any other powers provided by law, may petition the sixth division of the district court for a writ of execution, setting forth the nonpayment of the tax, surcharge or penalty; and the court shall immediately appoint a time for a hearing and cause a reasonable notice of the meeting to be given to the adverse party, and at the time and place of the return of the notice shall proceed summarily to hear the parties.

(b) If upon the hearing it appears that the tax or, penalty, or surcharge that is required to be remitted to the tax division pursuant to section 39-21.1-14 is unpaid, the court shall immediately issue an execution for the collection of the tax or, penalty or surcharge, which shall run to the sheriffs, or their deputies, of the several counties of this state, and in which the officer making service of the execution shall be commanded to levy upon the property of the party as may be taken on execution, and the officer charged with the service of the execution shall serve the execution as commanded, and shall sell the property seized as property is sold when taken on execution in actions at law, or the court shall take other action as it may deem proper to enforce the payment of the tax by the appointment of the receiver of the property of the party or otherwise. A party aggrieved by a final order of the court may seek review of the order in the Supreme Court by writ of certiorari in accordance with the procedures contained in section 42-35-16.

44-1-31. Taxes and child support to be paid by electronic funds transfer. -- (a) The tax administrator is authorized to provide by rule for the payment of any tax, including employer taxes, by electronic funds transfer where the tax required to be paid in connection with the filing of any return, report or other document with the division of taxation exceeds ten thousand dollars ($10,000). Provided, in all instances where a taxpayer is required to pay employment taxes to the Internal Revenue Service by electronic funds transfer, the taxpayer shall pay Rhode Island income tax withheld by electronic funds transfer.

(b) The tax administrator is authorized to provide by rule for the payment of child support and/or medical support received from any in-state, or interstate employers, making income withholdings, and from collections received from other state collection and disbursement units and foreign jurisdictions, by electronic funds transfer (EFT) when the child support and/or medical support is required to be paid in connection with a court or administrative order for support to the state's central collection and disbursement.

(c) The tax administrator shall adopt rules and regulations necessary to implement this section including, but not limited to, rules and regulations:

(1) Coordinating the filing of tax returns with the payment of taxes by electronic funds transfer; and the payment of child support,

(2) Specifying the form, frequency, and content of electronic funds transfer messages and electronic date information in order to insure the proper receipt and crediting of the tax or child support payment.

(d) Payment of personal income taxes by individuals is not subject to the provisions of subsection (a) of this section; provided, that employers' withholding of taxes is subject to the provisions of subsection (a) of this section.

(e) The tax administrator is authorized to provide by rule for payment of any surcharge that is required to be remitted to the tax division pursuant to section 39-21.1-14.

44-1-32. Hearing on application by taxpayer. -- Any taxpayer aggrieved by the action of the tax administrator in determining the amount of any tax, any surcharge that is required to be remitted to the tax division pursuant to section 39-21.1-14 or penalty for which a hearing is not provided may apply to the tax administrator, in writing, within thirty (30) days after notice of the assessment is mailed to the taxpayer, for a hearing relative to the tax or penalty. The tax administrator shall, as soon as practicable, fix a time and place for the hearing and shall, after the hearing, determine the correct amount of the tax, interest, and penalty.

SECTION 4. Section 44-53-1 of the General Laws in Chapter 44-53 entitled "Levy and Distraint" is hereby amended to read as follows:

44-53-1. Levy upon property. -- If any person liable to pay any tax or surcharge that is required to be remitted to the tax division pursuant to section 39-21.1-14 neglects or refuses to pay the tax within ten (10) days after demand, it shall be lawful for the tax administrator to collect the tax, and any further sum that is sufficient to cover the expenses of the levy, by levy upon all property and rights to property belonging to the person or on which there is a lien provided in this title or for the payment of the tax. If the tax administrator makes a finding that the collection of the tax is in jeopardy, notice and demand for immediate payment of the tax may be made by the tax administrator and, upon failure or refusal to pay the tax, collection of the tax by levy shall be lawful without regard to the ten (10) day period provided in this section.

SECTION 5. This article shall take effect as of July 1, 2007.